SPANISH Prime Minister Mariano Rajoy yesterday strongly denied allegations in the media that he and other leaders of his centre-right People's Party had for years received payments out of a secret slush fund.

"I need only two words: it's false," Rajoy said in a televised address to party leaders.

Rajoy said he would publish all his tax declarations on the party's website to clear up the scandal, after newspaper El Pais published what it said were ledgers maintained by party treasurers to register cash contributions from business leaders that were distributed to party leaders.